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Trade Stage 5 - GTANSW
Ian Sanders
Education Advisor
Austrade
March, 2007
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Geography Stage 5
Stage 5 Focus Area 5A4, Outcomes: 5.6 and 5.7
Australia’s regional and global contextregional and global trendsregional and global links
Strategies for a better futureecologically sustainable developmenttrading agreements and treaties
Electives: Australia’s Neighbours, World Political Geography, Communities, Work and Settlement, Development Geography.
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Where we are:
AAP Newswire 06/03/2007
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Export benefits: employment opportunities
The changing nature of work
Internet for sales & marketing
Niche products & markets (p10 11/12)
Smart use of technology (p78+ 11/12)
Supply chains (p9+ 11/12)
Our time zone for services (p9 11/12)
Proximity to Asia
Emerging industries
Austrade exporting poster series + activities (employment opportunities p3, growth opportunities p5 & future openings p7)
Year 11/12 book pp 30-32
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Australian exporters are quick to pick up the Internet
Exporters Non-exportersInternet connections
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Technology has also played a role and an Advanced Australia has fared well
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Niche Exports
Adelaide Advertiser, 11/07/06
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Niche Exports
Daily Telegraph, 29/06/06
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Emerging Industries
Burnie Advocate, 13/07/06
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Asia’s rise means that we are now in the right place at the right time: ‘The Tyranny of distance’ has become ’The Power of Proximity’
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Who we sell to:
Australia - Exports by Country
Mill
ions o
f A
ustr
alia
n D
olla
rs
January - December 2006
0
10000
20000
30000
40000
Japan Korea, South New Zealand United Kingdom Singapore
China United States India Taiwan Indonesia
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Who we buy from:
Australia - Imports by Country via All States
Mill
ions o
f A
ustr
alia
n D
olla
rs
January - December 2006
0
5000
10000
15000
20000
25000
30000
China Japan Germany Malaysia United Kingdom
United States Singapore Korea, South Thailand New Zealand
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Broad export categories
Non-monetary gold
3% ($5.8 b)Rural
14% ($24.7 b)Manufactures21% ($37.0 b)
Services21% ($37.2 b)
Non-rural other
6% ($11.3 b)
Resources33% ($58.4 b)
Other goods2% ($2.6 b)
ABS, December, 2005
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Barriers to Trade
Cultural differences
Political instability
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Barriers to Trade
Quarantine
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Barriers to Trade
Local regulations
Subsidies
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Trade liberalisation and protection
Trade protection issues - tariffs Protection in high-income countries (average tariffs)
0.83.4
9 1012
20
0
5
10
15
20
25
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Trade agreements
• Multilateral agreements – WTO• Regional agreements – APEC• Bilateral agreements – Free trade agreements (FTAs –
NZ, Singapore, Thailand, USA)
Find information on the four current agreements at:
• www.fta.gov.au fact sheets, minister’s speeches
The status of current negotiations can be found at:• www.dfat.gov.au feasibility, negotiations• Austrade: www.austrade.gov.au/economistscorner
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Trade agreements
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Trade agreements
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Trade agreements
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China Australia trade
Before entering the WTO in 2001, China’s average tariff rate was 15.3% but has been steadily reduced to 9.0% in 2005.
•The tariff on most mechanical products is 5%•The average tariff on agricultural products is 15.3%
Australia has an average tariff of 3.5%, with 85% of tariffs falling between 0 and 5%.
An FTA could boost trade by US$18-64 bn over 2006-2015.
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China’s tariff regime
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Sustainable development and exports
Areas in which Australia has internationally-recognised expertise include:
•arid land and water resources management•clean mining and mineral processing•pollution monitoring and controlling•waste management•organic foods•renewable energy•contaminated site remediation.
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Triple bottom line reporting
• Few currently report on triple bottom line
• Business responsibilities & accountabilities will adapt to suit business structures and activities in the post-industrial era
• Growing interest & feasibility studies
• Multinationals now adopting triple bottom line - WMC Resources (www.wmc.com 2002 Sustainability Report), Shell
Transparency and accountability by business for their economic, social & environmental performance
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Sustainable futures
Source : DFAT, 2000
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Global benefits: higher wages
Foreign manufacturers pay more than local firms, $US ‘000s, 1996
See www.dfat.gov.au/publications/globalisation_gains/faqs.pdf
Globalisation poster activities booklet p8
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Globalisation issues - poverty
Globalisation poster series – poverty p16
World poverty 1820–1998
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Globalisation
FOR:
•Global, open economies perform better with improved living standards, reduced poverty, increased literacy
•Better health care leading to longer life expectancy, reduced infant mortality
•Reduced costs and greater access to goods
•Interdependence encourages peace and democracy.
•Improved environmental awareness, better technology
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Globalisation
AGAINST:
•Restructuring causes loss of traditional skills, job loss
•Increased migration, brain drain, worsened labour conditions
•Uncompetitive economies may fall further, vulnerable to downturns
•Health impacts – migration, cigarettes, pollution
•Monoculture, land clearing
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Globalisation issues
Austrade globalisation posters and activities
• Globalisation means … • Globalisation in history• Globalisation drivers• Globalisation and the world economy• Globalisation and culture• Globalisation and world politics• Globalisation and the environment• Globalisation and poverty
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Austrade education resources
• Exporting for the Future Years 9/10
• Exporting for the Future Years 11/12
• Trends in Australia’s Trade – statistics
• Understanding the Global Economy – articles
• Going Global export strategy game
• CD – references from Austrade & DFAT
• Posters plus activities booklet with answers
• Market research resources online
• Web Quests and case studies online
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Your suggestions, requests and contact
details to:
The future
Phone: 02 6201 7430
Fax: 02 6201 7304
Education Program